|
|
| American Medical Systems Reports Fourth-Quarter Results |
| AMERICAN MEDICAL SYSTEMS LOGO
American Medical Systems, Inc. logo. (PRNewsFoto)[AG] MINNEAPOLIS, MN USA | |||
AMS Posts Record Revenues for Quarter and Year; Multiple Product Launches
Planned in 2001
MINNEAPOLIS, Jan 30 /PRNewswire/ --
American Medical Systems (Nasdaq: AMMD), the leading independent
manufacturer of urological surgical devices, reported net sales for the fourth
quarter ended December 31, 2000, of $26.7 million, a 23.7 percent increase
over sales of $21.6 million in the same quarter last year. Fourth quarter
2000 revenue gains would have been 27.4 percent if not offset by negative
currency exchange rate fluctuations of approximately $800,000 compared to the
1999 fourth quarter. The company reported net income for the fourth quarter
of $956,000, or $0.03 per share, versus a loss of $4.8 million in the year-ago
quarter. Net income in 1999 was impacted by charges related to technology
acquisitions during the year. The company's year 2000 fourth-quarter earnings
before interest, taxes and amortization (EBITA) were $5.0 million, up
32.8 percent from to $3.8 million in the 1999 period.
(PHOTO: http://www.newscom.com/cgi-bin/prnh/20000710/AMSLOGO )
For the year ended December 31, 2000, American Medical Systems (AMS)
reported net sales of $100.3 million, an increase of 23.3 percent from sales
of $81.4 million during the same period a year ago. The company's year 2000
revenue gain would have been 25.6 percent if not offset by negative currency
exchange rate fluctuations of approximately $1.9 million compared to 1999.
The company had net income for the year 2000 of $52,000, versus a net loss of
$9.8 million for the same period last year. As noted above, 1999 results were
heavily impacted by costs and charges related to business and technology
acquisitions during 1998 and 1999. The company's year 2000 earnings before
interest, taxes and amortization (EBITA) were $16.7 million, a 12.2 percent
increase compared to $14.9 million during 1999.
Douglas W. Kohrs, AMS president and CEO, commented: "We are pleased with
the financial results and strategic progress we made in 2000. Exceeding
$100 million in sales was a significant milestone for the company. This
accomplishment and our strategy of expanding our product offerings provide
momentum for a profitable 2001. As a public company, we are confident going
forward that AMS will be able to enhance its franchise and technology base to
better serve the needs of urologists and their patients."
Revenue growth for the fourth quarter of 2000 benefited from a 60 percent
rise in the company's line of incontinence products compared to the year-ago
quarter. Fourth quarter sales in 2000 included a full quarter of sales from
incontinence products acquired from Influence in mid-December 1999. Fourth
quarter incontinence sales rose 15.8 percent in 2000 versus the year-ago
quarter, including Influence sales prior to the acquisition date. Fourth
quarter sales of erectile dysfunction products increased 3 percent versus the
year-ago period. Prostate disease product sales rose 33 percent from the
fourth quarter of 1999. Manufacturing problems at an outside supplier
negatively affected prostrate disease sales in 1999.
Fourth quarter gross margins of 79.5 percent were consistent with those
achieved in the third quarter of 2000 and above the 73.1 percent in the fourth
quarter of 1999. Gross margins in the fourth quarter of 1999 were
76.9 percent, excluding an $837,000 inventory charge related to the
above-mentioned supplier problem.
Marketing and sales costs were 38.7 percent of sales in the quarter versus
38.9 percent in the fourth quarter of 1999. General and administrative
expenses were 12.7 percent in the fourth quarter compared with 9.9 percent in
the fourth quarter of 1999. Infrastructure expansion to support the Influence
acquisition and intellectual property defense costs caused this number to be
higher. Research and development expenses were 12.0 percent of sales in the
fourth quarter of 2000 versus 12.2 percent of sales in the fourth quarter of
1999. These R & D investments continue to increase in absolute dollars as the
company expands its product and technology portfolio.
Product Development Update
"In 2000 AMS spent considerable internal effort developing new products,"
said Kohrs. "In 2001, we will launch many of these innovative new products
into the market."
The InVance(TM) Male Sling Fixation System, an implantable device for the
treatment of stress urinary incontinence in men, launched in mid-2000
continues to build momentum and will be joined by two new female sling system
offerings in 2001. The first of these, the TransFix Female Sling Fixation
System, formerly known as Staple-Tac, will offer another option to complement
the successful In-Fast(TM) Female Sling Fixation System. Both male and female
incontinence sling markets will benefit from a recent agreement AMS signed to
increase the supply of its Urogen(TM) Dermis Allograft sling material.
In the erectile dysfunction area, AMS received FDA approval in the fourth
quarter 2000 on a new material called Parylene Micro Coating. This coating is
being added to key penile implant lines to increase the device's long-term
performance for the patient. Canada recently approved another new device
treatment, the AMS antimicrobial treated penile prosthesis. This product has
been successfully used clinically in Canada, and AMS anticipates U.S. FDA
marketing clearance for this product in the first half of 2001.
Clinical trials for the ProstaJect(TM) Ethanol Injection System, a new
technology for the treatment of benign prostatic hyperplasia (BPH) (enlarged
prostate disease), will start in the United States in February 2001. The
Investigational New Drug (IND) application for ProstaJect was cleared by the
FDA in early January, 2001. The product has CE Mark approval and will be
launched in European markets in May 2001.
Outlook
Kohrs said that for the first quarter of 2001, AMS expects net sales in
the range of $26.5 million to $27.5 million with EBITA margin approximating
the fourth quarter rate. Looking ahead to the full year 2001, management
anticipates net sales growth of between 10 and 15 percent with EBITA margin
improvement. These projections are subject to risks and uncertainties
described further below.
About Urological Disorders
The three most prevalent urological disorders are male and female
incontinence, erectile dysfunction and enlarged prostate disease.
Approximately 60 million people in the United States suffer from one or more
of these disorders. An estimated 11 million of these people have a disorder
severe enough to be candidates for treatment with AMS products. Although not
life-threatening, these disorders can diminish quality of life significantly.
In recent years, the number of people seeking treatment has increased markedly
as a result of greater awareness of new treatment alternatives, especially new
drug therapies.
About AMS
American Medical Systems (AMS), headquartered in Minneapolis, is a medical
technology company with 500 employees worldwide. AMS products include a large
portfolio of devices to treat both male and female incontinence, devices for
the diagnosis and treatment of erectile dysfunction; devices for urethral
obstruction caused by benign prostatic hyperplasia (BPH) (enlarged prostate
disease) and advanced surgical products used in transurethral resection of the
prostate. The company markets its products in more than 60 countries
worldwide. For more information about AMS, visit the Web site at
http://www.visitAMS.com
Except for historical information contained herein, the disclosures in
this news release are forward-looking statements made under the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those anticipated. These
risks and uncertainties include: continued use of non-invasive treatment
alternatives; continued physician use and endorsement of the company's
products; increased supply of sling material; increasing penetration of the
penile implant market; successful introduction of new products and product
improvements; actions related to reimbursement for the company's products and
potential product recalls. These risks and other relevant risks are described
in more detail in the company's prospectus, dated August 10, 2000, for its
initial public offering of common stock.
AMERICAN MEDICAL SYSTEMS HOLDINGS, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
Net sales $26,699 $21,583 $100,317 $81,353
Cost of sales 5,465 5,813 21,891 31,419
Gross profit 21,234 15,770 78,426 49,934
Operating expenses:
Marketing and sales 10,335 8,387 39,277 30,400
General and administrative 3,394 2,146 12,128 7,889
Research and development 3,211 2,638 12,225 9,552
Transition and reorganization
expenses -- -- 1,000 3,000
Amortization of intangibles 2,125 1,294 8,360 4,260
In-process research and
development -- 7,354 -- 7,354
Total operating expenses 19,065 21,819 72,990 62,455
Operating income (loss) 2,169 (6,049) 5,436 (12,521)
Royalty and other income 700 1,162 2,928 4,205
Interest expense, net (1,039) (1,825) (6,943) (6,873)
Income (loss) before income taxes 1,830 (6,712) 1,421 (15,189)
Income tax benefit (expense) (a) (874) 1,943 (1,369) 5,340
Net income (loss) $956 ($4,769) $52 ($9,849)
Net income per share - basic and
diluted (b) $0.03 $--
Weighted average common shares
outstanding
Basic 27,754 10,478
Fully diluted 30,070 12,809
EBITA (a)(c) $4,994 $3,761 $16,724 $14,911
EBITA as a percent of net sales 18.7% 17.4% 16.7% 18.3%
NOTES
(a) Comparison of effective tax rates between periods is meaningless due
to the relative size of non-deductible expenses compared to taxable
income during 2000.
(b) No common shares were outstanding during 1999 therefore no net income
per share is presented.
(c) EBITA consists of net income (loss) excluding net interest, taxes,
amortization of intangibles, and the non-cash charges related to
acquired inventory and in-process research and development.
AMERICAN MEDICAL SYSTEMS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
Assets December 31, December 31,
2000 1999
Current assets:
Cash and cash equivalents $12,165 $6,940
Accounts receivable, net 23,616 19,809
Inventories 9,674 11,045
Deferred taxes and other current
assets 6,050 5,608
Total current assets 51,505 43,402
Property, plant and equipment, net 24,773 26,774
Intangibles, net 99,731 101,951
Deferred taxes and other assets 5,252 6,881
Total assets $181,261 $179,008
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable $2,430 $2,753
Accrued liabilities and taxes 24,295 28,805
Current portion of notes payable 6,033 6,000
Total current liabilities 32,758 37,558
Long-term notes payable 38,459 95,300
Minority interest 521 521
Convertible preferred stock -- 67,465
Stockholder's equity (deficit) 109,523 (21,836)
Total liabilities and
shareholders' equity $181,261 $179,008
AMERICAN MEDICAL SYSTEMS HOLDINGS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands, except share data)
(Unaudited)
For the twelve months ended December 31,
2000 1999
Cash flows from operating activities:
Net income (loss) $52 ($9,849)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation 3,723 2,578
Amortization of intangibles,
including deferred
financing costs 8,575 4,260
In-process research and
development -- 7,354
Noncash pension charge 1,295 2,058
Noncash deferred
compensation 435 --
Change in net deferred taxes 1,093 (2,814)
Changes in operating assets
and liabilities (7,866) 10,311
Net cash provided by
(used in) operating
activities 7,307 13,898
Cash flows from investing
activities:
Purchase of property, plant and
equipment (1,675) (6,470)
Purchase of businesses, net of
cash acquired (3,744) (31,622)
Purchase of other intangibles (2,611) (1,000)
Net cash provided by (used
in) investing activities (8,030) (39,092)
Cash flows from financing
activities:
Sale of preferred stock -- 22,953
Issuance of common stock 63,343 --
Net borrowings on long-term debt (56,808) 6,300
Net cash provided by
financing activities 6,535 29,253
Effect of exchange rates (587) 73
Net increase (decrease) in cash and
cash equivalents $5,225 $4,132
SOURCE American Medical Systems
back to topPhoto Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000710/AMSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Greg Melsen, Chief Financial Officer of
American Medical Systems, 952-933-4666, greg.melsen@visitAMS.com
, or Marian Briggs, mbriggs@psbpr.com , or Nancy A. Johnson,
njohnson@psbpr.com , both of Padilla Speer Beardsley Inc.,
612-871-8877, for American Medical Systems
